Nigeria was the third most rewarding
stock market globally in 2012 behind Egypt and Kenya, as investors
harvested 35.45 percent yield- to- date return on investment from the
Nigerian Stock Exchange (NSE).
According to a study by Meristem
Research, the bulk of the returns came from NSE 30 selected stocks with
44.61 percent YtD return, Food and Beverages, 42.27 percent and banking,
23.91 percent. The companies that offered the returns,
according to the study, included the Paints & Coatings Manufacturers
Nigeria (PCMN), with 276.92 returns to close at N1.9 per share, Presco
with YtD of 96.08 percent to finish at 17.00 , Airline Services Limited,
with 92.63 returns and closing price of N4.18 per share, Zenith Bank
60.02 return and price of N19.49 and UTC, which rewarded investors with
50 percent at the price of N0.75 per share. The Nigerian Stock Exchange All Share Index finished the year at 28,078.80 with market capitalisation of N8.974 trillion.
The Egyptian stock market was the most
profitable, with YtD of 49.56 percent, Kenya, second with 39.32 percent
return to investors. YtD from the Ghana Stock Exchange was 35.45
percent, while South Africa returned 23.81 percent to investors.
The US Dow Jones Average closed the year
with YtD of 6.40 percent, NASDAG Composite Index 13.95 percent, UK FTSE
All share index 8.61 percent, France FAC 40 index 14.80 percent and
German Dax index, 29 percent. YtD from China’s Hang Seng was 23.90 percent, India BSE 30 index 25.82 percent and Japan Nikkei 225, 22.94 percent. The return profile shows that African
markets were most attractive by return standard,followed by markets in
the Asia/ Pacific regions. It shows that returns in matured markets
of Europe and America are thinning out , a situation that leaves
African and other emerging markets as viable alternative markets.
Analysts say if the trend continues in
the New Year, increased migration of investors to emerging and frontier
markets like Nigeria, other African countries and the Asia markets will
be witnessed. Victor Ogiemwonyi, CEO, Partnership
Investment and Investment Company, said the capital market growth
momentum would continue in 2013. He attributed the growth recorded in
2012 partly to the regulators’ hard work. “They have put in place needed
reforms that are now responsible for the gradual return of confidence
to the market”, he said.
According to Ogiemwonyi, the outlook for 2013 is very positive. “I expect the market to do better than average in the New Year. The factors that will influence things
include the rising confidence and the liquidity that will follow,
especially with the year starting with an approved budget. The gradual return of investors will see
the market rise in the first quarter and slowly correct any spike that
may be too far from the average”, he predicted.
culled from: Business Day
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